By Shrikant Chouhan
The benchmark indices witnessed profit booking at higher levels on Tuesday, the Nifty ended 125 points lower while the Sensex was down by 413 points. Among Sectors, almost all the major sectoral indices witnessed selling pressure at higher levels but Media and Auto indices lost the most, both the indices shed over 1 percent. Technically, a reversal formation and bearish candle on daily charts suggest profit booking is likely to continue in the near future. we are of the view that 18400/62300 could be the key resistance level for the bulls. As long as the Nifty and Sensex are trading below the same. The weak sentiment is likely to continue. Below 18400/62300 the indices could retest the level of 18200/61700. The further downside may also continue which could drag the indices to 18150/61500. On the flip side, above 18400/62300 the chances of hitting 18450-18475/62500-62600 would turn bright.
Bajaj Finserv: BUY – CMP: Rs 1426.5 – Target: Rs 1475-1485 – SL: Rs 1395
Technically, the stock is consistently forming higher bottom series formation and currently, it is comfortably trading above 20 and 50-day SMA (Simple Moving Average). We are of the view that, as long as it’s trading above 1395 the uptrend wave is likely to continue. On the higher side, it could move up till 1475-1485.
BHEL: Buy – CMP: Rs 81.9 – Target: Rs 86-89 – SL: Rs 79
After hitting the recent high of around 87, the stock witnessed a selloff and dropped on the lower side. However, it has found support near the important retracement zone. As a result, the bullish trend is very likely to continue for further up move in the near term.
M&M Finance: BUY – CMP: Rs 283.9 – Target: Rs 290-297 – SL: Rs 274.5
After a promising breakout formation currently, the stock is witnessing some profit booking at higher levels. However, the short-term texture of the stock is still on the positive side. Currently, the stock is trading near an important retracement level and the technical structure indicates a strong possibility of a fresh uptrend rally from the current levels.
(Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities Ltd. Views expressed are author’s own.)